JetBlue Offers Some Pilots $400,000 to Retire Early

A JetBlue A320 aircraft [Credit: Shutterstock/ Markus Mainka]

JetBlue is looking to trim its pilot ranks with voluntary separations for some of the carrier’s more senior aviators. Last week, the airline and the Air Line Pilots Association (ALPA) signed a letter of agreement to formalize the voluntary early separations.

The agreement, which was viewed by AirlineGeeks, states that the early separations will take effect April 1. Bidding opened for the program last week and will close in early February.

Pilots aged 59 on or before March 31 and considered “active” will be eligible for the early retirements.

Payouts

For pilots who opt in, JetBlue will pay out 55 hours of their hourly pay rate until their FAA-mandated retirement date or 18 months from the separation agreement’s effective date, whichever is less.

This means that a 12-year A320 captain, for example, who was set to turn 65 on December 12, 2027, could receive a payment of $416,293.02.

The agreement also uses the example of an E190 captain with eight years of seniority and a December 12, 2025, retirement date. With a program effective date of April 1, that pilot could receive a $160,858.91 payout.

Pilots who choose to retire early will also be eligible for certain retiree travel benefits.

In a separate message to pilots, ALPA leadership stated that the early retirements are “intended to help mitigate the impact of captain reductions in management’s upcoming planned supplemental system bid.”

In November, the New York-based carrier said it would downgrade over 300 captains and displace some first officers later this year.

A ‘Win-Win’

During JetBlue’s fourth-quarter earnings call on Tuesday, CEO Joanna Geraghty said the company was “looking forward” to offering early retirements. The airline reported a $44 million loss last quarter.

“I think it’s a win-win for JetBlue and for some of our pilots who are ready to pursue something after they retire,” Geraghty said. “So it continues to be a focus on how do we manage some of our elevated labor costs in a world where we have as many aircraft on the ground that we have right now with the Pratt & Whitney [engine] issue.”

The airline continues to have multiple Airbus A220 and A321neo aircraft grounded due to Pratt & Whitney engine woes. More groundings are expected later this year.

Editor’s Note: This article first appeared on AirlineGeeks.com.

ALPA aviation jobs JetBlue PILOT JOBS pilot retirement

Ryan EwingAuthor

Ryan founded AirlineGeeks.com back in February 2013 and has amassed considerable experience in the aviation sector. His work has been featured in several publications and news outlets, including CNN, WJLA, CNET, and Business Insider. During his time in the industry, he's worked in roles pertaining to airport/airline operations while holding a B.S. in Air Transportation Management from Arizona State University along with an MBA. Ryan has experience in several facets of the industry from behind the yoke of a Cessna 172 to interviewing airline industry executives. Ryan works for AirlineGeeks' owner FLYING Media, spearheading coverage in the commercial aviation space.